Bidding gains strength

Iowa farmland continues upward trend.

Apr 20, 2017

The farmland market continues to move sideways with a slight uptick. This is a welcome change from the downward trend that started in spring 2013. The strongest values within the market continue to be for high-quality farms (excellent soils and drainage), as well as for farms located adjacent to strong farmland owners.

Farmland sales activity (the number of farms for sale and sold) has continued to decline slightly each year for the past five years. Landowners and investors have been the most interested buyers. An increase in interest has been observed by nonfarming landowners and investment buyers. The stabilization in land prices and increase in interest from investors are in reaction to a search for solid investments, low-interest rates and a general belief that farmland is a tangible asset and sound investment.

NORTHWEST

Palo Alto County: Southeast of Emmetsburg, 240 acres sold in two parcels at public auction. Parcel 1 has 80 acres with 75.38 tillable acres and an 86.6 CSR2. It sold for $9,200 per acre. Parcel 2 has 160 acres with 153.68 tillable acres and an 87.1 CSR2. It includes a 20,000-bushel grain storage bin and 26.4 acres of CRP, paying $168.20 per acre. It sold for $9,000 per acre. Both farms have primary soil types of Nicollet, Clarion, Canisteo, Webster and Okoboji. Corn PLC yield is 179, and soybean yield is 45. The farms sold with full possession, and buyer reimbursed previous tenant for fall tillage.

NORTH CENTRAL

Floyd County: Along the Shell Rock River, 110 acres was offered in two parcels (70 and 40 acres) via private treaty. The parcels have a combined 82.6 tillable acres, including 65.5 acres in CRP. The average CSR2 of the CRP and tillable acres is 62.3. Remainder of the acreage is oxbows, timber and river frontage. The farm sold for $3,700 per acre. Buyer is an investor-landowner completing a 1031 tax-deferred exchange.

NORTHEAST

Bremer County: East of Plainfield, 99.16 acres sold for $7,674 per acre. The farm has 94.31 tillable acres with an 87.2 CSR2. Seller was a family LLC, the buyer an investor.

WEST CENTRAL

Monona County: In Center Township, 446.83 acres sold in two parcels. Parcel 1 has 133 acres, 106.2 crop acres and an 86.8 CSR2. It sold for $9,025 per acre. Parcel 2 has 313.83 acres, 120.84 crop acres (all in pasture) and sold for $3,000 per acre.

CENTRAL

Story County: South of Zearing, 80 acres sold for $10,800 per acre. The farm has 75.68 crop acres with an 85.2 CSR2. Buyer is a local farmer.

EAST CENTRAL

Linn County: South of Central City, 1,550 acres was offered in two tracts at public auction. It sold to a local farmer for $6,800 per acre and has 152 crop acres with a CSR2 of 61.

SOUTHWEST

Fremont County: Southeast of Sydney, 151.5 acres sold at public auction for $6,000 per acre. The farm has 125.99 crop acres with an 84 CSR2. It has a PLC corn yield of 141 and PLC bean yield of 47.

SOUTH CENTRAL

Lucas County: Northeast of Derby, 80 acres sold at public auction for $4,900 per acre. The farm has a CSR2 of 53.4 and is 97% tillable.

SOUTHEAST

Keokuk County: South of Deep River, 224 acres sold at public auction in two tracts. Tract 1 sold for $4,900 per acre and has 91.8 tillable acres with a 59.4 CSR2. Tract 2 sold for $3,900 per acre and has 108.8 acres of cropland with a CSR2 of 59. Both tracts were enrolled in CRP.Hertz Real Estate Services compiled this list, but not all sales were handled by Hertz. Call Hertz at 515-382-1500 or visit hertz.ag.